Apple launch iPhone

IT could be this year's Christmas must-have gift - but you might need to start saving now. Apple has announced its eagerly-awaited new iPhone will be launched in Britain on November 9 - in time for the festive rush.

IT could be this year's Christmas must-have gift - but you might need to start saving now.

Apple has announced its eagerly-awaited new iPhone will be launched in Britain on November 9 - in time for the festive rush.

Combining a touch-sensitive mobile phone handset with a built-in iPod media player and a wireless internet browser, it is hailed as `the best iPod ever' - but it doesn't come cheap.

It will cost £269. And buyers will also have to sign an 18-month contract of between £35 and £55 a month to use it.

The launch date was revealed by Apple chief executive Steve Jobs. He said: "It is a breakthrough phone. It is a very powerful phone and super easy to use. It is the best iPod we have ever made."

The 8GB device will run on the O2 network, and customers who switch to O2 will be able to keep their old phone numbers.

The iPhone's internet browser function will be compatible with 7,500 Wi-Fi hot spots across Britain plus other areas where the internet can be accessed wirelessly.

Customers will get access to unlimited internet downloads as part of their O2 tariff.

Apple has sold more than one million iPhones in the US since its launch there on June 29.

Earlier this month Apple slashed the cost of the iPhone in the US from its launch price of £298 to £198.

Asked why the device was more expensive in Britain , Mr Jobs said: "The majority is, of course, the VAT. The US price doesn't include any sales tax and the UK price does. That is the majority of the difference.

"Then there is a little bit more because it is more expensive to do business here."

Apple would not confirm how long its contract with O2 would remain exclusive.